Pricing is your most powerful lever. For a typical service business with a 10% net margin, a simple 10% price increase goes directly to the bottom line, effectively doubling the company's total profit without any additional operational cost or effort.
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When selling high-ticket services, don't raise prices incrementally. Instead, make a significant jump (e.g., from $3,800 to $8,000). If it doesn't sell, you've gained valuable market data and can simply re-price the next cohort. The upside of finding a new price ceiling far outweighs the risk of a single failed launch.
High top-line revenue is a vanity metric if it doesn't translate to profit. By setting a high margin target (e.g., 80%+) and enforcing it through pricing and cost management, you ensure the business is sane and profitable, not just busy.
Founders often feel guilty about raising prices. Reframe this: sustainable profit margins are what allow your business to survive and continue serving customers. Without profitability, the business fails and everyone loses. It's a matter of ensuring longevity, not greed.
To convince a CEO of a brand's value, ask one simple question: 'Do we have pricing power?' This metric—the ability to raise prices at or above inflation without losing demand—cuts through marketing jargon. It is the most direct, tangible indicator of brand health that resonates with finance-focused leadership.
Product marketers often struggle to prove direct ROI. By influencing pricing strategy, they can make a tangible and measurable impact on revenue and ARR. Pricing is a form of value communication—a core PMM competency—making it a natural area for them to lead and demonstrate their contribution to the bottom line.
Don't let your personal perception of what's 'expensive' limit your earning potential. Set your price high based on the value you provide. It is easy to lower a price that gets no buyers, but impossible to know if you could have charged more if you start too low. Never say no for the customer.
Many businesses over-index on marketing to drive growth. However, strategic price increases and achieving operational excellence (improving conversion rates, average tickets) are equally powerful, and often overlooked, levers for increasing revenue.
The math behind a high-ticket offer is often misunderstood. Since these services are typically 100% margin, a small number of buyers can drastically outperform the profit from your main product. A 10x priced offer sold to just 10% of customers can double revenue and triple profits.
Contrary to the common advice to 'just raise your prices,' you should first increase client volume until your delivery system is strained. This process proves your product's value and operational scalability, giving you the confidence and justification to command higher prices.
When increasing prices, the communication strategy should be direct and confident. If you truly believe the product delivers value commensurate with the new price, there's no need to hide the change. Evasive language or trying to 'shy away' suggests you doubt your own product's worth.
